Investigations and Enforcement

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Key Takeaway:

After decades of minimal federal activity, the Sports Agent Responsibility and Trust Act (SPARTA) is drawing renewed attention. A January 2026 Federal Trade Commission (FTC) inquiry into sports agent practices may signal a meaningful shift in enforcement — particularly in the NIL era.

On January 8, the College Sports Commission (CSC) issued guidance in direct response to a recent news report from Yahoo Sports that examined college football student-athletes being offered third-party NIL deals that violate the terms of the House settlement — making promises of third-party NIL money that does not yet exist — designed to induce transfers or retain players.

On January 6, 2025, University of Washington standout quarterback Demond Williams announced that he plans to enter the NCAA transfer portal just four days after reportedly signing a contract with Washington football for the 2026-27 season.[i] Williams’ deal with Washington has been reported to be for approximately $4 million, which is considered near the top of the market in terms of revenue sharing and NIL compensation for a student-athlete.[ii] It has been reported that Washington has no intention of releasing Williams from his contract and plans to pursue legal action against Williams. Washington officials have described the contract as a “legally binding revenue-sharing contract with the school.”[iii] Under the recent House settlement, schools are entitled to compensate student-athletes through a revenue-sharing pool that is capped at approximately $20.5 million.

The College Sports Commission (CSC) has circulated a 10-page University Participation Agreement that would dramatically reshape NIL and direct-payment enforcement. The biggest shift: schools would waive their right to challenge CSC rulings in court and funnel all disputes into the arbitration system created by the House settlement. The agreement only takes effect if every school signs.

The College Sports Commission (CSC) has circulated a 10-page University Participation Agreement that would dramatically reshape NIL and direct-payment enforcement. The biggest shift: schools would waive their right to challenge CSC rulings in court and funnel all disputes into the arbitration system created by the House settlement. The agreement only takes effect if every school signs.

In this episode of Highway to NIL, Troutman Pepper Locke attorneys Cal Stein, Mike Lowe, and Brett Broczkowski delve into the latest guidance from the College Sports Commission (CSC) regarding name, image, and likeness (NIL) deals. They explore the criteria set by the CSC for evaluating NIL deals, including payer association, valid business purpose, and range of compensation. The discussion highlights the implications for associated entities, particularly collectives and boosters, and the potential shift in their roles due to the new guidelines.